5 things to consider for applying a credit card

Competitive introductory credit card offers are set to ‘wow’ customers.

11:49 22 April 2013

There’s a lot of attention on the credit card industry right now as companies attempt to go the extra mile for their customers. Unbelievable deals are cropping up everywhere and if you have been waiting for a good time to start building up your credit rating, this is the time to snatch up one of the great credit card offers that you can find aplenty.

 

Here’s what to look for with offers:

 

• Introductory interest rates—find out how long, and under what circumstances the company can remove or alter your interest rates.

 

• Post-introductory interest rates—if you plan to use your card long term look at this item. You may be able to get another excellent deal when your introductory rate expires, but there is no guarantee that you will find a better deal so make sure you consider this if the card is for long-term use.

 

• Fees—late fees, over-the-limit fees, annual fees, and any others that are charged should be listed in the terms. Getting these fees may cancel your introductory credit card interest rates.

 

• Balance transfers—if you have existing debt that forces you to pay a higher amount of interest, consider transferring it to the new card. Even transferring small chunks if you get a lower credit limit than expected can help you pay it down much faster if you’re disciplined. You can soon have that higher interest debt paid off and save yourself a lot of money at the same time. It’s pretty much a win-win situation unless the transfer fees are exorbitant.

 

• Credit limit increases—if you’re looking for a credit card that will last your whole life, review their policies on credit limit increases. Chances are you may want or need a higher limit sometime in the future, and if you make the effort to establish a relationship with a credit card company, it should be beneficial to you.